Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 26): Malaysian Bulk Carriers Bhd (Maybulk) recorded a lower net loss of RM73.2 million or 7.32 sen per share in the fourth quarter ended Dec 31, 2017 (4QFY17) compared with RM396.1 million or 39.61 sen per share in the corresponding quarter a year ago, mainly due to write-back of vessel impairments, improved charter rates from dry bulk segment and reduced loss from associate.

The group’s quarterly revenue grew by 11.5% to RM71.5 million in 4QFY17 compared with RM64.2 million recorded in 4QFY16.

For Maybulk’s full year for financial year ended Dec 31, 2017 (FY17), the group’s net loss narrowed to RM135 million or 13.5 sen per share from RM491.3 million or 49.13 sen per share in FY16. Annual revenue jumped by 20.9% to RM272.6 million in FY17 compared with RM225.5 million in previous corresponding period.

According to a note filed with Bursa, the dry bulk segment reported a loss of RM23.3 million in FY17, an improvement of 74% compared to a loss of RM89 million in FY16, mainly due to improved average charter rates to US$8,193 per day in 2017 compared with US$5,388 per day in 2016.

“However due to the write back of vessel impairment and onerous contracts provision, the dry bulk segment reported a profit before tax (PBT) of RM82.7 million in 2017 from a loss of RM107.7 million in 2016,” it said.

A bulker was sold in June last year for a gain of RM1.86 million and it noted that the group and a joint venture have contracted to sell another three vessels.

The group has also disposed of its last tanker (M.T Alam Bakti) and exited the tanker segment in June, with about RM3.5 million profit from the tanker segment comprising gain on the disposal.

The associate, PACC Offshore Services Holdings Ltd (POSH) reported a lower loss of US$230.3 million in 2017 compared with a loss of US$371.6 million mainly due to lower impairment, it added.

“Excluding impairment, after-tax loss of POSH was US$64.9 million in 2017, compared with a loss of US$61.5 million,” it noted.

On the group’s prospects, it said that the combination of slowing fleet growth and improving global economic outlook bodes well for all dry bulk sectors as indicated by the surge in 4QFY17’s Baltic Dry Index (BDI).

“On the offshore services sector, whilst there is some positive sentiment in the market, with oil prices averaging above US$50 per barrel in 2017, offshore oil production activities remain subdued.

“Day rates remain under pressure, mainly due to an oversupply of vessels,” it said.

It pointed that the board is encouraged by the improving bulk market but remains concerned over the depressed offshore services sector and its adverse impact on the overall Group’s performance.

As of closing, Maybulk’s share price was unchanged at 78 sen with about 62,200 shares traded, giving it a market capitalisation of RM780 million.

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